Goldilocks or Not

BELIEVE IT OR NOT… The majority of investors, whether using a financial adviser or a major institutional website, have portfolios very close to 60% stocks and 40% bonds. THE REASON? It is the Goldilocks portfolio structure. Not too hot (aggressive) and not too cold (conservative) but just right (balanced).

THE RISK? The industry “best practices” portfolio models have no provision to adapt to crashing markets. Yet, every investor who answered a risk questionnaire believes their answers are intended to provide protection in times of market turmoil. HMMM. It just is not so.